The role of the Bioeconomy and the

CAP in prevention and valorisation of waste

from the agri-food sector

Galin GENTCHEV, Policy Officer

DG Agriculture and Rural Development

Unit D.4 Environnment, climate change, forestryand Bioeconomy

Energy & Climate Change and Bioeconomy WG, ERRIN

Brussels, 19th November 2019

Content of the presentation

• Strategic context in which the Bioeconomyoperates;

• Link with the CAP post-2020 proposal andopportunities to support the Bioeconomy in thefuture CAP Strategic Plans;

• Typology of business models/ projects to bepromoted through the future CAP, Horizon Europeand EU BES AP on waste prevention/ valorisationand bioenergy;

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Bioeconomy sector in the EU: (2 trillion euro turnover, Employs more than 18M people)

Turnover in the EU-28 by the Bioeconomy sectorIn percentage of value (2015)

Agriculture

Forestry

Fisheries & aquaculture

Food, beverage & tobacco industry

Bio-based textiles

Manufacturing of wood & woodfurnitureManufacturing of paper & paperproductsBio-based chemicals, pharmaceuticals &plasticsBiofuels

Bio-based electricity

51%

17%8,3%

7,7%

Based on DataM – Bioeconomics, database elaboratedby the EC, JRC IPTS & Nova Institut

• “A Better Life in Rural Areas”

• Convinced:

• "of the value of rural resources capable of deliveringsustainable solutions to current and future societalchallenges that concern all citizens of the Union such asassuring a safe and sustainable provision of quality food,developing the circular economy, broadening the bio-economy, fostering resource efficiency, combating climatechange and reducing the reliance on fossil fuels "

Importance of the Bioeconomy for the CAP post-2020 recognised by

policy makers:

• Commission Communication "The Future of Foodand Farming“

• Commission for CAP post-2020 proposals - theBIOECONOMY is in one of the 9 specific objectives,namely “Promote employment, growth, socialinclusion and local development in rural areas,including bio-economy and sustainable forestry”

Revised Action plan of the EU BES: towards a Sustainable, Circular

Bioeconomy

Strengthen and scale-up the bio-based sectors, unlock investments and markets;

Deploy rapidly local Bioeconomies across Europe;

Understand the ecological boundaries of the bioeconomy.

1)

•

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Improved framework for deploying renewableenergy/ bioenergy:

Improved sustainability criteria to ensuresustainable mobilisation of the biomass;

Delegated Act that excludes biofuels fromfeedstocks being at risk of causing a highindirect land-use change (ILUC);

Improved potential for biomass use throughimproved definitions (i.e. Intermediary/catch crops are not feed/food crops)

Impact of the revised Renewable Energy Directive (RED II)

Opportunities to support the Bioeconomy under CAP post-2020

• Bioeconomy in the New CAP objectives-

• Need to link future CAP Strategic plans and National Bioeconomy Strategies;

• VCS for industrial crops important for the Bioeconomy.

• New CAP delivery model:

• More flexibility and discretion for MSs to design and implement interventions in the New CAP Strategic Plans (opportunity for stakeholders to influence their content);

• The role of the Commission to disseminate best practices to support the preparation of MSs- facilitate capacity building.

Key drivers for deploying the BE and successfully integrating

primary producers (I)

• Create a dynamic enabling gouvernanceframework, integrating the sectoral (verticalintegration) and territorial dimension (national/regional) of the Bioeconomy- BE Clusters, BEManifesto, etc.

• Promote business models at small, medium andlarge scale that most effectively integrate theprimary producers.

Key drivers for deploying the BE and successfully integrating

primary producers (II)• Increase awareness among primary producers

about existing opportunities for sustainable,inclusive and circular Bioeconomy production.

• The central role of cooperation models of primaryproducers: enablers in creating economies of scaleand acting as facilitators/advisors to individualprimary producers about best options forintegrating into the Bioeconomy value chains.

Key drivers for deploying the BE and successfully integrating

primary producers (III)

• A National BE Strategy (NBES) as a comprehensiveand coherent framework for a cross-sectoral,strategic approach for developing the Bioeconomy(importance of regional BES);

• Link between future CAP Strategic plans and theNBES.

Special focus on small/ medium scale business models

More efficient production close to the biomass location (e.g. no losses of biomass; little or no transportation);

Income diversification and higher added value for primary producers;

Produced by-products can still be further transformed in small or big-scale bio refineries;

Production of valuable protein feed as a by-product;

Nutrients recycling as a way to valorise waste through the production of biological fertilisers

Production of bioenergy on-farm, contributing to energy transition;

• Interventions in rural development remainingrelevant for the Bioeconomy: Investments; Cooperation; Exchange of knowledge and information; New businesses and young farmers.

Opportunities for supporting the Bioeconomy in the CAP post-2020

proposals

Based on the SWOT analysis:

Assess the biomass potential using allavailable data/ information;

Identify strengths, needs and respectiveopportunities for supporting Bioeconomytypes of interventions.

Opportunities for supporting the Bioeconomy in the CAP Strategic

Plans

Intervention logic in the CAP Strategic plans:

Identify priorities, taking into account globalNational Bioeconomy support framework(NBES);

Cover important cross-cutting aspects (i.e.raising awareness and mobilisingstakeholders at all levels, promoting BEgovernance structures).

Opportunities for supporting the Bioeconomy in the CAP Strategic

Plans

Intervention logic in the CAP Strategic plans:

Role of cooperatives/ cooperation structuresof primary producer in mainstreaming the BEand integrating them into the BE valuechains.

Promote circular and sustainable BEsolutions;

Identify an adequate mix of funding optionsunder CAP, other ESIFs, including FIs;

Opportunities for supporting the Bioeconomy in the CAP Strategic

Plans

Next Multiannual Financial Framework (MFF)2021-2027 proposal - the budgetary amountsforeseen for research and innovation in food,agriculture, rural development and bio-economywithin the new R&I Framework Programme"Horizon Europe" - roughly doubles (10 billionEUR).

Opportunities for supporting R&I in the Bioeconomy in the CAP post-

2020 context

The role of the Bioeconomy in waste management (I)

• Avoiding food waste and food losses with thesupport of the Bioeconomy:

Full valorisation of biomass through sustainablecircular business models in primary production(edible and non-edible biomass);

Innovative packaging;

Resources efficiency in integrated food chains(methodology for measuring food waste);

Activities on reforming food value chains under therevised action plan of the EU BES.

The role of the Bioeconomy in waste management (II)

• Valorisation of unavoidable food waste throughnutrients recycling:

IEP AGRI focus group on Nutrients recycling-analysis and recommendations from its final reportwill be integrated into the research agenda ofHorizon Europe.

Stakeholders support for ”improved circularity,circular agriculture, circular food system, circularbioeconomy (umbrella organisations; researchers;individuals); zero food losses and waste (reduce,reuse and recycle)”;

The role of bioenergy/ biogas production combinedwith nutrients recycling in a win-win scenario;

The role of the Bioeconomy in waste management (II)

Some key recommendations of IEP AGRI focusgroup:

Demonstrate how tailor-made biobased fertilisersmatch plant requirements;

Development/ adaptation of cooperation businessmodels to improve the production and marketing oftailor- made fertilisers;

Exchange of information between farms on the useof biobased fertilisers, including nutrient and carbonbehaviour in the soil.

Involvement of as many farmers as possible isconsidered key.

Typology of BE projects

• Small scale business cases – individual projects;

• Medium and large scale business cases-supporting private BE infrastructure;

• Integrated projects: private and public stakeholders.

Placing bioenergy/ biogas production in circular and

sustainable farming business models…

…means creating further economic,environmental and climate benefits.

Economic benefits of integrating biogas production in circular

farming models:• Costs savings due to fuels savings, and

reduced chemical fertilizers use replacedby the by-product of the biogas production(the digestate);

• Improve farmer resilience and income as aresult of the diversification;

• Further opportunities for farmers tocreate new value chains (i.e. producingalgae by using other by-products from thebiogas production)

Environmental benefits of integrating biogas production in

circular farming models

• Avoiding the “food versus fuel dilemma”-incentivising the use of biomass forbiogas production, which does not takeaway additional land and qualifies insome cases as "advanced" biogas.

Other environmental/climate benefits of integrating biogas

production• Adaptation of some of the agricultural practices

favourable for the soil health and fertility (lower soilcompaction and soil erosion); for example:

- winter cropping;

- no tillage/strip tillage; etc.

• The production of gas from manure:

- Displaces fossil energy;

- Prevents GHG emissions from manure;

- Provides nutrients for the crops by replacing mineralfertilisers, improving the LT fertility of the land.

Further opportunities for development of biogas production

• As part of circular models of green bio-refineries based on grass;

• Biogas production expanding beyondindividual farms (role of cooperation).

The proposal for the new CAP also foresees in the first pillar:

an Eco-Scheme (i.e. remunerate farmers for producing/ using biological fertilisers);

an option of limited "Coupled Income Support"for non-food products, which have the potential to replace fossil material in the bio-economy.

Opportunities for the biogas production in the CAP post-2020

proposals

Thank you for your attention!